Foreign Minister Julie Bishop has dismissed a call from Tony Abbott to cut aid to the Palestinian Authority and follow US President-elect Donald Trump in pledging to move our embassy to Jerusalem.

"Australia should cut our $40 million a year in aid to the Palestinian Authority while it keeps paying pensions to terrorists and their families. Another way for Australia to demonstrate its unswerving support for Israel, as the Middle East's only liberal, pluralist democracy, might be to join any move by the Trump administration to move its embassy to Jerusalem," Mr Abbott wrote on Monday.

Ms Bishop hit back saying Australia would not be shifting its embassy.

No plans to move embassy to Jerusalem

"The Australian government does not have any plans to move the Australian embassy from Tel Aviv to Jerusalem," she said.

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After Mr Abbott's suggestions that Australia should further cut aid to the Palestinian Authority, Ms Bishop said Australia's aid to the territory was already under review.

"The Australian aid program has robust risk management and due diligence assessment processes which are also applied to partner agencies and governments. The Australian government has a zero-tolerance policy with regard to fraud and corruption. Australian aid to the Palestinian Territories is under review after the aid program for World Vision in the Palestinian Territories was suspended last year," she said.

World Vision has denied allegations its former Gaza head Mohammad El Halabi funnelled $US43 million to Hamas – the subject of an Israeli court case. The charity said this would be impossible as records show it only spent $US37.37 million in Gaza ­between 2007 and June 2016

Professor in Global Islamic Politics at Deakin University, Greg Barton, said such a move would not be a good idea.

"The short answer is no, it wouldn't be a wise move. No other nation has moved its embassy to Jerusalem ... Under Trump the US may go ahead and move its embassy. It is hard to see why Australia should follow suit," Dr Barton said.

He said such a move would prevent Australia from playing a peaceful role in the Israel-Palestine peace process.

"That would deal us out of playing any role as a serious middle power in negotiating," he said.

"The future of Israel for Jewish Israelis and Palestinian Israelis and for people living on the Gaza Strip and the West Bank depends upon trust and negotiation. The window for a two-state solution seems to be closing.

"Australia potentially can play a role in helping to negotiate some sort of way forward. If we went ahead and moved our embassy, following suit after the Americans to Jerusalem, we would be closing off doors of opportunity to play that mediating role."

New Zealand's conservative government voted for the resolution. The Australian government is not on the council and therefore not entitled to a vote but Ms Bishop underlined Australia's strong support for Israel by saying that if she could she would not have voted for it.

Prime Minister Malcolm Turnbull then slammed the vote as one-sided.

Mr Trump has said he might move the US embassy to Jerusalem, upending long-standing US policy based on of a two-state solution.